El Salvador became the first nation to declare Bitcoin as legal tender and to integrate a Bitcoin strategy into its national treasury, resulting in an accumulation of over $400 million in Bitcoin holdings.

Under the leadership of President Nayib Bukele, legislation was enacted in 2021 to legitimize Bitcoin as legal currency. Following this, El Salvador has engaged in consistent Bitcoin purchases, which President Bukele often announces on X.

The country's Bitcoin assets are not solely from direct purchases; El Salvador also benefits from a passport program that generates Bitcoin, converts Bitcoin to dollars to facilitate business transactions, and engages in Bitcoin mining. These activities are part of El Salvador's broader initiative to establish a self-sustaining Bitcoin economy.

President Bukele has publicly shared the government's Bitcoin wallet address and stated that the national Bitcoin holdings are securely stored in a state-managed cold storage facility. 

He also disclosed plans for the government to continue purchasing Bitcoin daily until the cost of Bitcoin becomes unaffordable with traditional fiat currencies.

To date, El Salvador's Bitcoin purchases total over 5,700 BTC, bought at an average price of approximately $42,700 each. With the recent increase in Bitcoin's value to over $70,000, the nation's Bitcoin investments have grown by nearly $80 million.

President Bukele has stated that Bitcoin adoption could stimulate El Salvador's economy by attracting tourists, reducing the cost of remittances, and drawing foreign investment. He also suggests that Bitcoin's limited supply might increase in value compared to the U.S. dollar over time.

Despite initial skepticism, President Bukele's strategy of investing in Bitcoin has garnered attention as Bitcoin prices have risen. If global adoption of Bitcoin continues to grow, El Salvador's early and substantial investment could position it as a leader in Bitcoin wealth.

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